Walgreens Boots Alliance Inc (WBA)
Liquidity ratios
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.66 | 0.66 | 0.63 | 0.63 | 0.63 | 0.70 | 0.75 | 0.78 | 0.74 | 0.83 | 0.72 | 0.77 | 0.83 | 0.69 | 0.67 | 0.69 | 0.66 | 0.66 | 0.73 | 0.76 |
| Quick ratio | 0.28 | 0.26 | 0.25 | 0.26 | 0.27 | 0.32 | 0.33 | 0.39 | 0.32 | 0.41 | 0.31 | 0.19 | 0.19 | 0.30 | 0.28 | 0.29 | 0.29 | 0.28 | 0.32 | 0.32 |
| Cash ratio | 0.03 | 0.03 | 0.03 | 0.04 | 0.07 | 0.15 | 0.11 | 0.19 | 0.08 | 0.17 | 0.05 | 0.04 | 0.03 | 0.04 | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 | 0.03 |
The liquidity ratios of Walgreens Boots Alliance Inc, as reflected in the data provided, indicate the company's ability to meet its short-term obligations with the available current assets.
The current ratio has been consistently low, ranging from 0.63 to 0.83 over the past few quarters. This implies that for every dollar of current liabilities, the company only has 63 to 83 cents of current assets available to cover those obligations. While the ratio has fluctuated, it generally suggests that the company may have difficulties meeting its short-term obligations.
Similarly, the quick ratio has also been low, varying between 0.19 and 0.41. This ratio excludes inventory from current assets, focusing on the most liquid assets. The consistently low quick ratio indicates that the company may have challenges meeting its immediate financial obligations without relying on the sale of inventory.
Lastly, the cash ratio has shown a declining trend, ranging from 0.02 to 0.19. This ratio measures the company's ability to cover its current liabilities with its available cash and cash equivalents. The decreasing trend suggests a decline in the company's immediate liquidity position and may raise concerns about its ability to cover short-term obligations.
Overall, based on the liquidity ratios provided, it appears that Walgreens Boots Alliance Inc may face challenges in meeting its short-term financial obligations with the current assets it has on hand. Investors and stakeholders should closely monitor the company's liquidity position and management's strategies to address these liquidity concerns.
See also:
Walgreens Boots Alliance Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| Feb 29, 2024 | Nov 30, 2023 | Aug 31, 2023 | May 31, 2023 | Feb 28, 2023 | Nov 30, 2022 | Aug 31, 2022 | May 31, 2022 | Feb 28, 2022 | Nov 30, 2021 | Aug 31, 2021 | May 31, 2021 | Feb 28, 2021 | Nov 30, 2020 | Aug 31, 2020 | May 31, 2020 | Feb 29, 2020 | Nov 30, 2019 | Aug 31, 2019 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 6.24 | 5.07 | 3.40 | 6.00 | 5.54 | 5.94 | 5.94 | 4.73 | 8.27 | 8.01 | 7.17 | 3.22 | 4.57 | 3.79 | 11.15 | 6.80 | 5.66 | 6.56 | 5.59 | 7.10 |
The cash conversion cycle of Walgreens Boots Alliance Inc has shown fluctuations over the past several quarters. The company's ability to convert its resources into cash has varied, as evidenced by the changes in the cash conversion cycle.
In the most recent quarter, the cash conversion cycle was 6.24 days, indicating that on average, it takes the company 6.24 days to convert its investments in inventory and receivables into cash. This suggests that the company may have experienced some challenges in efficiently managing its working capital during this period.
Looking at the trend over the past few quarters, we observe that the cash conversion cycle has ranged from a low of 3.22 days to a high of 11.15 days. This variability highlights potential fluctuations in the company's operational efficiency and effectiveness in managing its cash flow. A lower cash conversion cycle indicates a shorter time frame to convert investments into cash, which can be a positive sign of efficient working capital management.
Overall, analyzing the cash conversion cycle provides insights into Walgreens Boots Alliance Inc's ability to effectively manage its working capital, optimize its inventory levels, and collect receivables in a timely manner to improve cash flow and financial performance.